If you are not offering the HECM for Purchase, then you could be missing big sales, big time!
Have you ever been in a situation, for example, where your clients have $200,000 cash to spend on a new home and all you can find are homes from $250,000 to $275,000 that meet your client's needs? Most Realtors would say "I'm sorry, but since you don't have the cash, and you don't want to finance, I don't see how I can help you". But with a HECM for Purchase, you can.
More and more realtors are learning about a very powerful tool called the HECM for Purchase. Why? Because over 10,000 baby boomers turn 62 EVERY DAY!!
HERE'S HOW IT WORKS Your clients do not want a monthly mortgage payment and they only have $200,000, in liquid assets, and to cite the example above, they found their dream house which costs $250,000. So instead of giving up, the buyer, who is 65 years old, puts down $125,000, and secures a reverse mortgage for the balance of $125,000 (down payment is estimated at 50% of purchase price for borrowers both the age of 65).
And now what have you accomplished?
• Your clients bought the house of their dreams free from monthly debt servicing, which was their major goal.
• Your buyer retains $75,000 of the $200,000 they started with as investment or savings or emergency funds.
• You have made a sale and you and your clients are very, very happy.
Simply put, a HECM for Purchase allows potential homebuyers, 62 years of age and above (only one needs to be 62) to purchase their dream retirement home without the obligation of a monthly principal & interest payment for as long as at least one of the borrowers maintain the home as their primary residence.